(CercleFinance.com) – Stifel raises its advice on BASF from ‘hold’ to ‘buy’, with a price target raised from 47 to 59 euros.
The analyst believes that the modest forecast for 2024 and the reported weak business conditions in Q1-24 are already priced into the stock.
Stifel now anticipates ‘gradual but constant signs of improvement’.
The broker indicates that 2024 will remain difficult but that trends are reversing with mid-cycle targets indicating upside potential.
For 2024, Stifel estimates that EBITDA margins for Verbund should be 17%, >23% at Agro and >15% at Coatings.
By adding Automotive Catalysts, the ambition arises from a group EBITDA of 13 billion euros, according to Stifel calculations, compared to 7.7 billion euros in 2023.
Furthermore, ‘we assume that the group’s EBITDA can reach €9.5 billion in 2025 and €11 billion in 2026’, concludes the analyst, referring in particular to the contribution to this performance of the new Verbund site in Zhanjiang.
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